Carbon Monthly: What progress have we made in the fight against climate change?
As we step into 2025, it's a perfect time to look back at the significant strides made in 2024. It was a game-changing year for the fight against climate change, with increased collaboration from both the private and public sectors. One of the standout developments was the growing recognition and adoption of regenerative agriculture, an area we at HeavyFinance are particularly proud to see taking center stage.
In this edition, we reflect on the key achievements from 2024, highlight the exciting developments within the carbon markets, and share insights into the advancements made in the fields of renewable energy and transportation. We also explore the ongoing work driving regenerative farming practices and its vital role in creating a sustainable future.
What progress have we made in the fight against climate change?
When following the news, the future of our planet can feel overwhelming, especially with recent news confirming 2024 as the first year to exceed the 1.5°C global temperature limit outlined in the Paris Agreement. Yet, as we begin this year, it's vital to also recognise the significant progress made and the promise of a more sustainable future.
Global Temperature Projections: A Downward Shift
In 2015, the United Nations Environment Programme warned that the world was on track for a catastrophic 4°C rise in global average temperatures by 2050. Since then, widespread policy efforts and advancements in renewable energy and sustainable technologies have lowered that projection to 3.1°C. Moreover, if all nations deliver on their current climate action plans, this could drop further to 2.6°C above pre-industrial levels—bringing us closer to meeting the targets of the Paris Agreement.
Renewable Energy: Phasing out Fossil Fuel Power Generation
Renewable energy has undergone remarkable growth, with solar power leading the charge. Solar capacity is now 40 times greater than in 2010 and is projected to become the dominant source of electricity globally by the early 2030s. This revolution has been driven largely by China, alongside significant contributions from the European Union and the United States.
The plummeting cost of solar technology has been a game-changer, making solar energy cheaper than traditional energy sources in most regions. This affordability has paved the way for rapid scalability, heralding what many are calling the “Solar Century.”
Wind energy has also experienced significant strides, tripling in capacity over the past decade and set to double again in the next. Together, these advancements are reshaping the global energy landscape, bringing us closer to a sustainable energy future.
Electric Vehicles: Revolutionising Transportation
The transportation sector is undergoing a rapid transformation, particularly with the rise of electric vehicles (EVs). In 2024, over half of all vehicles sold in China were electric—a milestone that underscores the nation’s leadership in the EV revolution. This trend is now spreading globally, supported by decreasing costs and expanding EV infrastructure.
Cities as Climate Champions
Urban areas, responsible for 70% of global greenhouse gas emissions, are stepping up their climate efforts. Many cities are discouraging private vehicle use, expanding electric public transportation, and transitioning to sustainable heating and cooling systems.
Initiatives like the C40 Cities Coalition, which brings together nearly 100 cities worldwide, are driving progress. These cities are committed to halving their emissions by 2030 through inclusive, science-based, and collaborative strategies.
Supporting Developing Nations
When it comes to funding for developing nations, significant progress has been made. As we noted in the last month's edition, the most recent COP saw the Parties agree on an annual fund of $300 billion to help these nations adapt to climate change. While this figure falls short of the $1.3 trillion target presented by developing countries, it represents a dramatic increase from the $18.4 billion allocated just nine years ago—a testament to the growing recognition of climate justice and the need for equitable support.
Carbon Compliance Mechanisms and Carbon Markets: A Critical Breakthrough to Halt GHG Emissions and Achieve Net-Zero Commitments?
This year saw a major breakthrough both in carbon compliance mechanisms and carbon markets, including the expansion of the Chinese National Emission and Trading System to the cement, steel and aluminum sectors. This measure will expand the coverage of GHG emissions by 3 billion tons, or 5% of global GHG emissions. Overall, 24% of Global GHG emissions are covered by some sort of carbon compliance mechanism.?
On Carbon Markets, 2024 was of paramount importance as nearly after a decade of negotiations culminating in agreed-upon mechanisms for governing carbon trading. With a robust infrastructure now in place and enhanced safeguards to ensure the integrity of carbon credits, carbon markets are poised for scalability. This provides a critical tool for bridging the gap between existing technologies and the ultimate goal of climate neutrality.
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A Hopeful Outlook
While the challenges of climate change remain formidable, the past decade has demonstrated humanity’s ability to make meaningful progress. From breakthroughs in renewable energy and transportation to advancements in urban planning and financial support, the groundwork for scalable solutions is being laid.
These efforts, though requiring continued acceleration, give us a fighting chance to meet our climate goals and secure a sustainable and inclusive future for generations to come.
Carbon Market News
Mars' recent partnerships across Europe to scale regenerative agriculture practices represent a significant step in supporting the transition to the more beneficial farming method. By transitioning 20,900 hectares of crops to regenerative practices, including minimal tillage and cover cropping, Mars is promoting sustainable farming techniques that not only reduce greenhouse gas emissions but also enhance soil health and biodiversity.?
Verra’s Afforestation, Reforestation, and Revegetation (ARR) methodology, VM0047, has been officially approved by the Integrity Council for the Voluntary Carbon Market (ICVCM) as meeting the Core Carbon Principles (CCPs) Assessment Framework. This approval brings significant importance to the carbon markets, as it ensures that projects using this methodology will generate carbon credits with CCP labels, instilling confidence in buyers. The approval is a major step forward in encouraging investment in high-integrity nature-based solutions for carbon removals, such as tree planting and ecosystem restoration. With the adoption of advanced remote sensing techniques for accurate carbon quantification, the methodology strengthens the credibility and scalability of carbon offset projects, making it a critical tool for driving global investment in sustainable climate solutions.
Company News
At HeavyFinance, we are also celebrating the 14 million euro investment in regenerative agriculture from Multitude Bank.
Meet our carbon farmer
Meet Donatas, one of our carbon farmers from Lithuania. In this interview, you can learn more about regenerative farming and how profitable it can be.?
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